What is tds for shinfting
This query is : Resolved
amol dhage
(Querist)
29 October 2012
Respected sir,
i have info about
SHIFTING OF HEAVY MATERIAL OR MACHINERY CAN LIABLE TO PAY T.D.S OR NOT ?
IF YES Then what is the rate of TDS ?
.
.
.
PLEASE GIVE ME SOLUTION
i have info about
SHIFTING OF HEAVY MATERIAL OR MACHINERY CAN LIABLE TO PAY T.D.S OR NOT ?
IF YES Then what is the rate of TDS ?
.
.
.
PLEASE GIVE ME SOLUTION
CA.Sourabh Sethia
(Expert)
30 October 2012
what you want to know please elaborate and clarify what is the issue ??
03 August 2025
Hey! Here’s a clear answer on TDS for shifting heavy material or machinery:
Is TDS applicable on shifting heavy material or machinery?
Yes, if the payment made for shifting services qualifies as payment to a contractor or service provider, TDS is applicable under the Income Tax Act.
Shifting or transportation of heavy machinery usually falls under contractual services.
Relevant Section & Rate:
Section 194C of the Income Tax Act deals with TDS on payments to contractors and sub-contractors.
If you pay a contractor for shifting/transport services, you need to deduct TDS.
TDS Rate: Generally, 1% if the payment is to an individual or HUF contractor.
2% if the payment is to other entities (companies, firms).
Conditions for TDS Deduction:
TDS is to be deducted if the payment or aggregate payments in a financial year exceed Rs. 30,000 for a single contract or Rs. 1,00,000 cumulatively.
You must deduct TDS at the time of payment or credit, whichever is earlier.
Summary:
Service TDS Applicable? Section TDS Rate
Shifting heavy material/machinery Yes 194C 1% (individual/HUF), 2% (others)
Important:
Ensure you get the contractor’s PAN to deduct TDS correctly.
File the TDS return and provide the contractor with a TDS certificate (Form 16A).
Is TDS applicable on shifting heavy material or machinery?
Yes, if the payment made for shifting services qualifies as payment to a contractor or service provider, TDS is applicable under the Income Tax Act.
Shifting or transportation of heavy machinery usually falls under contractual services.
Relevant Section & Rate:
Section 194C of the Income Tax Act deals with TDS on payments to contractors and sub-contractors.
If you pay a contractor for shifting/transport services, you need to deduct TDS.
TDS Rate: Generally, 1% if the payment is to an individual or HUF contractor.
2% if the payment is to other entities (companies, firms).
Conditions for TDS Deduction:
TDS is to be deducted if the payment or aggregate payments in a financial year exceed Rs. 30,000 for a single contract or Rs. 1,00,000 cumulatively.
You must deduct TDS at the time of payment or credit, whichever is earlier.
Summary:
Service TDS Applicable? Section TDS Rate
Shifting heavy material/machinery Yes 194C 1% (individual/HUF), 2% (others)
Important:
Ensure you get the contractor’s PAN to deduct TDS correctly.
File the TDS return and provide the contractor with a TDS certificate (Form 16A).
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